Britain's Anglo Asian Mining begins production at Gilar gold deposit in western Azerbaijan

BAKU. March 24 (Interfax) - Anglo Asian Mining Plc, which has a portfolio of gold, silver and copper projects in Azerbaijan, has begun mining ore at the Gilar gold deposit in the Dashkesansk District in western Azerbaijan.

"Gilar's first ore was mined, comprising 1,267 tonnes of ore grading an average of 0.65% copper (with a maximum of 1.63% copper) and 1.36 grams of gold per tonne (with a maximum of 3.27 grams of gold per tonne)," the company reported.

"The company expects to ramp up production steadily in the next few months to achieve a monthly production target of around 50,000 to 60,000 tonnes of ore," AAM said.

Production takes place in Zone 4 of the deposit, which has an estimated 2.4 million tonnes of ore with 1.47% copper and 1.78 g/t of gold.

"With over 54,000 tonnes of copper and 255,000 ounces of gold confirmed, Gilar is set to play a crucial role in our strategy to transition to a mid-tier, primarily copper-focused, producer," Anglo Asian CEO Reza Vaziri was quoted as saying in the press release.

The company reported previously that it plans to mine around 400,000 tonnes of ore at Gilar in 2025.

Gilar is located in the Gedabek Contract Area around 7 kilometers from the company's processing facilities. The deposit's JORC-compliant mineral resources are estimated at 54,000 tonnes of copper and 255,000 ounces of gold.

Azerbaijan signed a production sharing agreement with Anglo Asian in August 1997. Azerbaijan's stake in the contract is 51% and AAM holds the remaining 49%. AAM currently mines precious metals at the Gedabek and Gosha deposits. At present, the company holds the rights to eight contract areas in Azerbaijan.